Corporación Inmobiliaria Vesta (VESTA) Investor Day 2024 summary

Strategic Achievements and Historical Performance

• Achieved 40% GLA growth over six years, expanding from 30M to 42M sq ft, with a focus on value creation and profitability, not just size.

• Portfolio GLA grew 1.4x, rental revenue 1.9x, and FFO 2.7x from 2018 to 2024e, with asset value doubling to $3.7B.

• NAV per share and FFO per share grew at double-digit CAGRs (16% and 18%, respectively), outperforming peers and major indexes.

• Delivered a 16% IRR to investors, outperforming S&P 500, FIBRAS, REITs, and BMV IPC over the same period.

• Successfully entered and became a leader in key markets like Guadalajara, Monterrey, and Mexico City, now holding a diversified portfolio with no single market exceeding one-third of total assets.

Route 2030: Strategic Plan and Growth Targets

• Route 2030 targets portfolio GLA of 63M sq ft, rental revenue of $489M, and FFO of $308M by 2030, with a $1.7B investment plan for 20M sq ft of new developments.

• Two main value creation avenues: extracting upside from the existing $3.7B portfolio (targeting $600M in added value) and new developments (targeting $1.5B in value creation).

• Financial targets: FFO per share $0.30+ and NAV per share $5.0+ by 2030, with LTV <30% and Net Debt/EBITDA <5.0x.

• Growth plan prioritizes major markets (Monterrey, Guadalajara, Mexico City) but maintains strong presence in border and central regions.

• Plan to double rental revenue by 2030, with post-2030 mark-to-market rent upside.

Market Outlook and Business Opportunities

• Nearshoring, e-commerce growth, and strong US-Mexico trade drive robust demand for industrial real estate, with Mexican exports and e-commerce sales projected to add 250M sq ft of industrial demand by 2030.

• Mexico's share of US manufacturing imports projected to rise, with 200+M SF GLA growth opportunity by 2030.

• E-commerce penetration expected to reach 15% by 2030, requiring 36M SF of new logistics space.

• Rent growth remains strong, especially in prime markets, with some regions like Bajío expected to see 10-20% increases in coming years.

• Clients are resilient to political and trade uncertainty, with logistics and e-commerce tenants maintaining growth plans regardless of external noise.